Tax Credits Tax Credits
A valuable associate of mine, @john langreck at Fox Consulting Group LLC sent me the following email this morning that he has allowed me to share about credits currently available to businesses.
Fox Consulting Group LLC specializes in helping my clients qualify and obtain these credits.
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ERC
?We can still file Employee Retention Credit (ERC) claims for the 2021 tax year.? This is a refundable payroll tax credit up to $21,000 per employee.? The CP210 is the refund from a single quarter for a 20-member law firm (they received similar refunds for several other quarters as well).? Please notes the deadline to file is 4/15/25 (Tu).? I’ve attached a spreadsheet to determine eligibility that should take no more than 5 minutes to complete.
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PSLRC + PFLRC
?The Paid Sick Leave Refundable Credit (PSLRC) and Paid Family Leave Refundable Credit (PFLRC) are payroll tax credits available to employers whose employees missed work due to COVID-19 (sick, quarantine, vaccine, or caring for a family member).? The PSLRC is capped at $10,220 per employee while the PFLRC can be as much as $22,000 (both may be claimed for the same employee).? The deadline to file a claim is also 4/15/25 (Tu).
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NEC
?Businesses located in a California Designated Geographic Area (DGA) can pursue the New Employment Credit (NEC) for new hires in 2025.? The maximum benefit of this state income tax credit is $116,480 per employee.? The following mapping tool can be used to determine if a location is in a DGA:
?California Competes
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The final round of the California Competes Tax Credit (CCTC) for fiscal year 2024-2025 is now open with at least $214.7M available (possibly more from previously unallocated amounts).? The CCTC rewards businesses of all sizes that hire full-time employees and purchase or lease real and personal property over the next 5 years.? The deadline is 3/10/25 (M) @ 11:59 PM (PDT).
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Please do not hesitate to contact me, your CPA and John if you have any questions or require assistance.
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